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BUY TO LET were is the best

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  • BUY TO LET were is the best

    Hello
    To every one I am new here/
    I want to buy property in UK for 70000-100000 pounds but need advice which area will be the best to buy to have good rent and also easy to let the property .
    I prefer to buy house not flat .
    Can anyone help me .
    Thanks to everyone in advance .
    Regards

  • #2
    Re: BUY TO LET were is the best

    There are no shortcuts!
    Why would you believe any advice you gte anyway.
    Do your own research, this is not a route to quick riches!
    It is not called Buy-To-Regret for nothing!

    That said choose a university town or city for reliable rent and lettings.
    Cheaper up north!
    BRAND NEW HOMES
    Information for UK new home buyers
    New Home Blog The latest news and views

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    • #3
      Re: BUY TO LET were is the best

      Brand New Homes is right - There's no avoiding a bit of research. Many get tempted by the high yeilds of the north, then are hurt by the long void periods and management fees!. My B2L properties are all within zone 6 of South West London. I used to achieve around 7% - 8% yeild but a recent rise in the market means I'm getting nearer 5% but void periods are non existant.

      If you're new to this, take into account any letting agents renewal fee as well as management fee. If you can, find a tenant yourself. Also, if you're going leasehold, any property management fee or service charges will effect your monthly yeild which you need to consider. Add to this any cost of repair, statitory checks and general property updating...

      Whilst many are tempted by B2L for the potential capital growth and investment yeild, when the maths is done correctly many are better offer with their cash in an ISA. But if you're still keen, overseas central London investors are having a ripple effect on the suburbs right now. So it could be a good time buy in suburbs in the south and North. If you're a cash buyer there's plenty of old landlords (with tenants in place) who are looking to cash in on the recent jump in prices.
      Steve Grapes
      ____________________________
      www.moneyinproperty.co.uk

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      • #4
        Re: BUY TO LET were is the best

        I own 20 buy to lets, had them for 7/8 years - here's my advice for what it's worth:
        - stick to affordable housing, 2 beds with a garden, that way the rent will not be out of reach for most families/couples so you will avoid the property being empty
        - avoid flats because they carry management fees (paid quarterly) and have a higher turn around because whilst they look flash on day one the tenant soon becomes tired at the lack of garden esp in spring summer.
        - buy locally, you'll know better than anyone which areas around you are up market and down market.
        - location is key, so buy in a nice area, try and buy near the amenities such as schools and possibly town
        - also try and buy near easy motorway access since a lot of tenants do commute

        Here's some more tips:
        - also credit check your tenant - I was letsure, they do a financial vetting service - believe me if you get the wrong tenant in who avoid paying your rent you'll really regret it
        - be patient - do not put the first guy who turns up into your property - I've waited an extra 2/3 and more weeks for the right tenant - it is so worth it - if you get a gut feel that the tenant is not for you then turn them away
        - advertise your property on in the local paper but more importantly on line - use visum and gum tree. Its really important that you take some good pictures.

        Here's 1 of my ads - keep the wording to the point - you may take better pics but you'll get the point:
        2 bedroom semi detached house to rent in 22 Homestead Garth, Hatfield, Doncaster DN7 - 17656408 - Zoopla

        - when you issue a contract make sure you:
        - include a S21, this is an eviction notice
        - register your deposit with mydeposits.co.uk or someone similar

        That's me - I've tried to summarise the key points. It can be daunting so let me know if you have any more qus.

        And oh - you know where to come for that mortgage

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        • #5
          Re: BUY TO LET were is the best

          I think you should research by your self so that you could choose better area.

          Comment


          • #6
            Re: BUY TO LET were is the best

            Hi Stef,

            There is actually a simple answer to your question.

            As a landlord, you are going to be running a business, and therefore you will have clients i.e. tenants.

            All successful businesses follow a simple strategy and property investment is no different.

            The strategy is: Find the demand BEFORE you create the supply.

            If no one wants to rent your property, then it can never be an investment.

            In other words, research tenant demand to determine where to buy.

            If you are going to be self-managing, I suggest you buy within a 10 mile radius of where you live.

            If you are going to be appointing a lettings agents on a fully managed basis, then you can look further afield.

            Typically, as others have pointed out, yields can be higher up North.

            Base your strategy on cash flow and you should be able to stay in the game long enough to benefit from any capital growth.

            Comment


            • #7
              Re: BUY TO LET were is the best

              To get around 10% annual yield is good. To get a house for 100k and expect to get 10% yield is 10k a year and £192.31 a week and £769.23 PCM. So a holiday let will easily achieve them or you could do a high spec finish on a rental but remember I quote pre-tax and other deductions.
              Location is another key, a university can really boost lets to students.
              Personally I believe you are better off not going for an expensive house, a student one bed flat or a small average family of 2 bed to at most 3 bedroom house is all you should stretch to especially if you want a portfolio the last thing is to have a house tying everything up. So location, size and the local market are definatly the factors worth considering. Good luck

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